It’s rare, but sometimes businesses don’t always make their repayments. At Crowd2Fund, we have an effective process in place to recover your money, where possible.

Crowd2Fund conduct thorough due diligence on all opportunities listed to check for their credit worthiness, before listing on the platform. Where possible, security or a personal director guarantee is taken against the loan to help recover the debt if something goes wrong.

The following definitions will help you understand your investments. Your portfolio status is shown on your dashboard when you login.


This is the percentage of your loans that are recoverable but where the business has made a late repayment. This is when businesses are behind with their contractual payments due to internal or non-controllable issues like changing bank details or delayed debtor payments.

Your default rate

This is the percentage of your loans that are in either default or/and undergoing legal proceedings. These cases might take longer to recover the debt and dependent on the complexity of the case. Crowd2Fund represents your interests in court.


On occasion, a business that has been listed on the platform has failed. When this happens Crowd2Fund represents your interests in court. So far Crowd2Fund have only had to write off one out of three hundred loans issued to date, and will continue to strive to keep this figure low. Investors should remember their capital is at risk and they should not invest more than they can afford to lose. Generally funds can only be recovered with debt based investments.

Written off percentage

This is the percentage of loans that are not recoverable and your total losses to date. To reduce your investment risk, it is always advisable to invest in different businesses and different products. You can read the full risk warning here.

Average debt written off

Average debt written off is the amount of debt that has been written off and is not recoverable across all outstanding platform loans.

Bad debt summary

RecoverableYour default rateWritten offRecovered
CommunicationSoftLegalNot recovered the fundsRecovered the funds
Estimated timescale45 days90 days180 daysN/A
Platform statistics1.23%2.06%0.40%0.00%
Target statistics3.00%2.00%1.00%N/A
Estimated timescale
Platform statistics
Target statistics
Last updated on 1st November 2018
More information

Recovery process

Late but recoverable – Soft communications

We always try to take a pragmatic approach to initially recovering funds from businesses. Communication is key at this stage in order to try to help to find a solution to the problem. Phone calls, letters and emails will be sent to the business to remind them to settle the loan repayment.

Defaulted - Debt recovery agents or legal proceedings

After 3 months of missed repayments, the loan goes into default. This is when the legal proceedings start. Most, but not all Crowd2Fund loans have either security or a director guarantee. The legal proceedings will involve leveraging these agreements to recover the funds from the business or the directors.

Written off - Mostly non-recoverable

If in the unlikely situation a loan is not recoverable, then it is written off and the investor makes a loss on that investment. The target debt to be written off is set at 1% and is currently at 0.41%.

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for more information

Risk warning

Investments like these involve risks including loss of capital. Please see our risk section before making an investment decision